Council adopts home‑rule expenditure limit resolution, citing inflexibility of 1980 formula

Prescott — The Prescott City Council adopted a resolution on March 25 to place a four‑year home‑rule alternative expenditure limitation before voters, with staff presenting projections that the statutory 1980 expenditure formula would limit city spending below forecasted needs.

Mark Woodfill, the city’s budget and finance director, explained that Arizona’s statutory expenditure limit is tied to a 1980 base and annual population and CPI adjustments, a formula that often fails to reflect rising service costs, new facilities and capital projects. He said that of Arizona’s 91 cities, all but six have adopted some form of home rule to avoid routine budget constraints imposed by the older formula.

Woodfill presented a draft publicity pamphlet and a four‑year projection (fiscal years 2027–2030) showing the difference between the statutory limit and the city’s projected expenditures after allowable exclusions. He said the average annual shortfall under the statutory limit in the projection was roughly $90 million over the four years, explaining that exclusions, grants and debt treatment under the law produce a complex calculation.

After the required second public hearing, the council recessed and convened a special meeting to adopt the resolution setting ballot language (Resolution 2025‑1915). The resolution passed by voice vote; the transcript records the motion as "Passes 5 0."

Ending: The resolution advances a home‑rule expenditure option to the ballot for voter approval; staff said the publicity pamphlet will be submitted to the state auditor general for verification of calculations before finalization.